Karnataka Bank Car Loan Interest Rate

Last Updated 08th Feb 2018

Karnataka Bank Car Loan Interest Rate Feb 2018

Karnataka Bank New Car Loan interest rate starts from 10.25% and Karnataka Bank Used Car Loan interest rates starts from 14.45% . These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure. Check Best Offers

Karnataka Bank Car Loan

Features

New Car Loan

Used Car Loan

Processing Fee

0.25% Min Rs. 250 Max Rs. 1,000

0.25% Min Rs. 250 Max Rs. 1,000

Loan Tenure

Upto 5 years

Upto 3 years

Lowest EMI

Rs. 2,137 per lakh

Rs. 3,238 per lakh

Loan Amount

Upto 85%

Upto 60% of market value

Prepayment Charges

Nil

Nil

Transparency with no hidden costs

Apply Car Loan @ 9.25%*

Occupation

Salaried Self Employed Professional Businessman

Type of Loan Required

Your Residence City or Pincode

Loan Amount Needed

Rs.

Gross Annual Receipt

Rs.

Net Monthly Income

Rs.

Full Name

Mobile Number

+91

Choose Your Employer type

Company You Work For

Select Your Profession

Type of Property

Weight of Gold to Pledge

Type of Car

Annual Profit

Rs.

Annual Turnover

Existing Loan From

Existing Loan From

Current Loan Outstanding

Current Interest Rate on Loan

EMI Amt You Pay Monthly

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Employer Category: Employer category of the borrower is a major deciding factor in
order to determine his/her rate of interest. Karnataka Bank has a list of
company categories of salaried individuals to which they avail vehicle loan. So, higher
company category leads to low Karnataka Bank car loan rate.

Relationship with the Bank: Karnataka Bank offers special rates, offers
and charges to the existing account holders of the bank. Those who have managed their
accounts and made all the payments on time in past will get benefit of low vehicle loan
interest rate.

Repayment Capacity: Before giving loan to the borrower, Karnataka Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the
customer through CIBIL as it has all the details of previous loans taken and their
repayments. CIBIL also gives the information of credit card bills payment.

Karnataka Bank Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Car loan eligibility relies upon different factors but the most important factor is your
ability to repay the loan. The main factors on which the eligibility of an applicant depends
are:

Age: Age plays an important role to know your eligibility and repayment
capacity. Karnataka Bank offers auto loan to those who are
atleast 0 years old at the time of loan approval and
maximum 0 years at the time of loan maturity.

Job stability and Profession:
Job stability is important to improve your status and eligibility for vehicle loan from Karnataka Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best Karnataka Bank car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit
cards has a direct impact on your Karnataka Bank car loan eligibility. If you have
a poor repayment record, then you may not get the loan but on the other side, a regular
repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL
score of 700 and above.

Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if
you apply for a high loan amount.

Karnataka Bank EMI Car Loan Calculator

Car loan EMI calculation varies from bank to bank depending upon the method of
calculation.

The standard convention should be to use the EMI in arrears method on reducing balance basis
– whereby you pay interest on the loan amount outstanding on a reducing basis at or after
the end of the month.

Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the
EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is
different from the one advised to you by the agent, you must check the calculation basis
with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]

Where,

P represents the principal amount that you want to apply for.

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the tenure of loan in months

E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest
rate of 9.25%. Your monthly payments for this loan after applying the above
formula would be Rs. 14,616 for 5 years.

Karnataka Bank Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire
loan amount before the end of tenure period. Karnataka Bank allows prepayment of
vehicle loan after paying 1 EMI with prepayment Nil.

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.